Faryar Shirzad is the chief policy officer at Coinbase. She has called on Congress to pass crypto-specific regulations.
In an official letter entitled “Why Congress must act: Clarity on Crypto and Consumer Protections”, the exchange stressed the urgency of legislative clarity within the space of digital assets, stressing that blockchain technology is changing the global economic landscape.
Coinbase called on lawmakers to develop a framework which fosters both innovation and protects consumers.
Shirzad, according to
“The absence of clear legislation in the United States stifles potential, leaves consumers exposed, and drives innovation overseas.”
Legislative priorities
Coinbase’s letter highlighted key legislative priorities, including defining digital assets, granting the Commodity Futures Trading Commission (CFTC) oversight of crypto spot markets, and establishing clear rules for stablecoins and capital raising.
This company has also advocated for a regulatory structure that differentiates between financial instruments and commodities. The Securities and Exchange Commission and industry participants have been at odds over this issue.
Coinbase was clear in its recommendations that DeFi and digital trade should be protected from excessive regulatory intervention, while platforms that hold funds for customers must adhere to the highest standards of transparency and security.
According to the company, blockchain networks must allow users control over their digital assets with no unnecessary restrictions. In the letter, it was warned that:
“The risks of inaction are clear. Without regulatory clarity, the US will continue to lose its edge in blockchain innovation.”
Coinbase’s appeal comes as lawmakers debate various crypto-related proposals, with industry advocates urging Congress to provide clear, enforceable guidelines.
Shifting tides
Biden and federal regulators such as former SEC Chairman Gary Gensler maintained a firm stance against digital assets. Gensler argued that many tokens were securities.
The landscape under Trump’s administration has changed dramatically. The industry sees an opportunity to have a balanced discussion about regulation as legislators express their willingness for engagement with crypto firms. They also consider legislation which fosters innovation instead of focusing on only enforcement.
Coinbase reported that 52,000,000 Americans have crypto. Legislative action is needed to ensure the US remains the leader in digital currency.
Shirzad wrote:
“Passing thoughtful legislation will protect consumers while empowering them to participate fully in the blockchain economy.”
The regulatory landscape is changing, and lawmakers are faced with a difficult decision. Do they embrace a framework to encourage responsible growth? Or do they allow unrest in the industry that has been growing the fastest outside of US borders?
Coinbase believes that thoughtful regulation can empower developers, provide protection for consumers and make the US a leader on the global stage in terms of digital assets. But, Coinbase warns, hesitation in an ever-increasingly competitive market could cost you.
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